Bitcoin Stalls Above $83K Amid Lower Inflation Data
Bitcoin (BTC) held above $83,000 on Thursday after its rally in response to lower-than-expected US inflation data stalled. The Personal Consumption Expenditures (PCE) price index came in at 3.4% year-on-year in August, below the expected 3.7%. This reading was complicated by methodology changes that could reduce core PCE inflation by up to 20 basis points.
The rally in Bitcoin's price coincided with a decline in BTC-denominated open interest, which fell almost 20% despite a 35% increase in the asset's value from its August low. This divergence suggests that the recent price gains may be less susceptible to forced liquidations.
However, analysis warns of potential resistance above the current price, particularly around $85,000 where sell orders and long-term holder coins are clustered. The critical level for Bitcoin's broader rebound from June lows remains at $82,500.